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SMART & FINAL INC. NET INCOME UP SLIGHTLY IN FISCAL 1993 THIRD QUARTER; CASINO TO REMAIN LONG-TERM INVESTOR

 SANTA BARBARA, Calif., Nov. 2 /PRNewswire/ -- Smart & Final Inc. (NYSE: SMF) today reported that net income increased slightly to $5.2 million for the 16-week quarter ended Oct. 10, 1993. The company reported earnings of $5.1 million in the third quarter of 1992. Net income equaled 25 cents per share in the third quarter of each year.
 As previously reported, in the first quarter of 1993 the company adopted three new accounting standards as required by the Financial Accounting Standards Board ("FASB"). The effect of adoption of the new standards was a non-recurring, non-cash, net of tax charge of $12.9 million, or 63 cents per share. The ongoing impact of the new standards is expected to be immaterial.
 Excluding the non-recurring FASB charge, net income for the first three quarters of 1993 was $12.1 million, or 59 cents per share, up 7.3 percent from the 55 cents per share for the like period of 1992.
 Third quarter sales of $264.8 million increased 10.9 percent over the prior year. For the first three quarters of fiscal 1993, sales of $636.6 million increased 11.0 percent.
 For the third quarter of 1993, same store sales increased 3.9 percent. For the first three quarters of 1993, same stores sales were up 4.4 percent.
 During the third quarter of 1993, three new stores opened in West Hollywood, Dublin and Huntington Park, Calif., bringing the number of new stores opened in 1993 to 12 and the number of new stores opened in 1992 and 1993 to 26. Four additional stores are planned for the fourth quarter.
 Robert J. Emmons, chairman and chief executive officer, stated, "We have continued our aggressive new store opening program despite the recession. We are willing to pay the price of a temporary slowing of profitability because the new store investments will insure our future earnings growth. Because of the new store impact, earnings growth is not likely to improve until 1994. We are really encouraged by our same store sales growth, especially in relation to our major competitors who have experienced same store sales declines of 8 percent to 12 percent."
 Emmons also announced that Groupe Casino, after carefully exploring its alternatives with respect to its investment in Smart & Final Inc., has concluded that it is in their best interest to retain their shares in Smart & Final as a long-term investment. Emmons said, "Groupe Casino is convinced that the long-term value of Smart & Final is far in excess of the amount they might realize in the current weak market. Groupe Casino has expressed its confidence in management and is committed to the growth and expansion of the Smart & Final concept. We are pleased that they have chosen to remain a major investor."
 Founded in 1871 in downtown Los Angeles, Smart & Final Inc. operates 133 grocery warehouses in California, Arizona and Nevada and a foodservice distributor operating in Northern California. For 1992, Smart & Final reported sales of $765 million.
 SMART & FINAL INC.
 Earnings Release Highlights
 (000s omitted except for per share data)
 16 Weeks Ended Percent
 Oct. 10, Oct. 4, Increase or
 1993 1992 (Decrease)
 Sales $264,832 $238,867 10.9
 Income from operations 8,372 8,250 1.5
 Net income 5,162 5,100 1.2
 Earnings per share 0.25(a) 0.25(a) ---
 Average shares
 outstanding 20,476,415(a) 20,343,096(a) 0.7
 40 Weeks Ended Percent
 Oct. 10, Oct. 4, Increase or
 1993 1992 (Decrease)
 Sales $636,613 $573,344 11.0
 Income from operations 19,624 18,106 8.4
 Non-recurring FASB
 adoption charge, net (12,900) --- 100.0
 Net income (loss) (785) 11,250 NM
 Earnings per share
 before FASB charges 0.59(a) 0.55(a) 7.3
 From FASB charges (0.63) --- 100.0
 After FASB charges (0.04)(a) 0.55(a) NM
 Average shares
 outstanding 20,527,324(a) 20,337,198(a) 0.9
 (a) Adjusted to reflect a 3-for-2 stock split effective on Feb. 5, 1993.
 -0- 11/2/93
 /CONTACT: Leanne Reynolds of Smart & Final, 805-564-6735 or 213-584-9850/
 (SMF)


CO: Smart & Final Inc. ST: California IN: REA SU: ERN

JL-LM -- LA012 -- 9777 11/02/93 16:00 EST
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Date:Nov 2, 1993
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